Hiring across borders: EOR vs entity

There's a moment in every growing company when hiring abroad goes from 'nice to have' to 'we need this person now.' Here's the framework we use.

Use an EOR when

• 1-5 hires in a country, with no plans to scale beyond 10
• You need to move fast (days, not weeks)
• The role is independent (engineering, design, individual contributor)

Set up an entity when

• 10+ hires planned within 24 months
• You need IP holding, local sales contracts, or office space
• Compliance posture matters (banking, tax treatment, equity)

The hidden cost of EOR

EORs charge ~$500–$1,000/employee/month. At 10 employees, you're at $60-120k/year — the same as an entity setup. Plan ahead.